Jackson & Sons Construction worked on a project in California using the knuckleboom truck leased from Southwest Products (see contract below). Did Jackson & Sons Construction breach the contract when they used the truck in California?
LEASE AGREEMENT
This agreement is made between Southwest Products, Inc., of Surprise, Arizona, hereinafter referred to as “lessor,” and Jackson & Sons Construction, Inc., having its principal place of business in Phoenix, Arizona, hereinafter referred to as “lessee.”
- For and in consideration of the covenants and agreements hereinafter contained, lessor has leased to lessee the personal property known and described as follows:
2012 International 4900 Knuckle Boom Truck (specs in Exhibit A)
(hereinafter referred to as “equipment”) for the period of twelve (12) months commencing from October 10, 2018 and upon the conditions and agreements hereinafter stipulated.
- Retaking possession of the equipment, pursuant to the provisions of this contract, shall not prejudice lessors’ right or claim for rents and payments due hereunder.
- Return of equipment. At the end of the term, lessee shall return the equipment freight prepaid to lessor at the place from which equipment was shipped in as good condition as it existed at the commencement of the term, reasonable wear and tear excepted.
- Lessee shall pay as rent for the leasing the sum of $1,000 Dollars per month for twelve (12) months due the first day of each month, commencing on October 10, 2018.
- If lessee shall default in paying any rent due; or if lessee should breach any other term, covenant, or condition of this lease, lessor shall have the right to retake immediate possession of the equipment and for such purpose lessor may enter upon any premises where the equipment may be located, and with or without notice of its intention to retake the same. If any step is taken by legal action or otherwise by lessor to recover possession of equipment or otherwise enforce this agreement or to collect monies due hereunder, lessee shall pay lessor the equivalent of the monies expended or charges incurred by lessor in such behalf, including reasonable attorney’s fees.
- The equipment shall be used only for projects of Jackson & Sons Construction, Inc. within the following counties of Arizona, and lessee shall not remove it from said location without the written consent of lessor: Maricopa, Yavapai, Pinal, and Gila.
- Indemnification of lessor. Lessee agrees to protect and hold lessor harmless against any and all losses or damage to equipment by fire, flood, explosion, tornado, or theft. Lessee hereby assumes all liability to any person arising from the location, condition, or use of equipment, and shall indemnify and does indemnify lessor of and from all liability, claim, and demand whatsoever arising from the location, condition, or use of equipment whether in imperfect or defective equipment, and from every other liability, claim, and demand whatsoever during the term of this lease or arising while equipment is in the possession of lessee.
- No assignment. Neither this lease nor any right or interest thereunder shall be assigned by lessee in any respect whatsoever.
- Choice of law. This lease and agreement shall be deemed to have been executed and entered into in the State of Arizona, shall be construed and performed in accordance with the laws thereof, and enforced by the state courts of Arizona.
- Exclusion of oral statements. This instrument contains the entire agreement of the parties. No oral or other statements, proposals, or agreements shall be binding on either of the parties.
- Lessee shall at all times during the term of this lease at its expense keep equipment insured to the amount of at least Twenty-Six Thousand (26,000) Dollars ($ ) for such risks as lessor shall require, with carriers acceptable to lessor, for lessor’s benefit. Lessee will deliver the policies of insurance to lessor. Lessor shall be entitled to receive all insurance proceeds collected under the policies.
- Inspection by lessor. For the purpose of examining and inspecting the condition of the machinery, lessor may from time to time enter any premises where the machinery may be located. The equipment is provided “as is.”
- Purchase Option. Lessee has the option to purchase the equipment during the term of the lease upon payment of $25,900 and 80% of rental payments shall be credited toward the purchase price and the balance of such purchase price shall be paid in cash.
Lessor’s Name Lessee’s Name
By: Horatio Hornblower, President By: Samuel Jackson .
Southwest Products, Inc. Jackson & Sons Construction, LLC
a. yes
b. no